Regal ups 1Q output 3% qoq; begins drilling two wells

Regal Petroleum (RPT LN) reported 1Q12 hydrocarbon production of 1,769 boepd (+3% qoq), including daily averages of 233,800 m3 of gas and 49 m3 of condensate. The company also said it embarked on its 2012 investment program, which includes drilling two 5,250 m – 5,450 m wells, to be fully financed by the company. The SV-53 well has already been spudded and as of reporting date reached 1,862 meters and MEX-105 should be spudded within a month (vs. earlier announced plan of mid-March). Average drilling times of 350-400 days suggests both wells will reach their targeted depths in 2Q13.